Food & Hotel Vietnam is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726

Le Viet Hai forecasts the market in 2023: Tourism real estate “pauses”, low-income housing develops

09/02/2023

Chairman of Hoa Binh Construction Group assessed the “breakdown” of the tourism industry because Covid-19 seriously affected the real estate market, and said that businesses urgently need the support of the State.

“I assess the construction and real estate market in 2023 will develop in the following areas. The first is to build low-income housing, social housing, housing for workers”, said Mr. Le Viet Hai – Chairman of the City Association of Construction and Building Materials. Ho Chi Minh City (SACA), Chairman of Hoa Binh Construction Group spoke at the seminar “Vietnam’s economic development dynamics in 2023” organized by the Ministry of Construction.

“Besides, there are urban housing projects that are in progress, and there may also be new projects and industrial works that bring a huge source of work for construction businesses. In parallel, there are public investment projects and infrastructure projects,” he added.

However, the Chairman of Hoa Binh Construction Group said that the tourism real estate segment in 2023 may “be paused” because there is an excess of tourist real estate. After more than 2 years of pandemic and 1 year of war between Russia and Ukraine, these tourist real estate properties cannot be put into operation.

“I think the main cause of the impact on the real estate market is from the tourism industry, and the tourism industry has been heavily impacted by the Covid-19 pandemic and the prolonged war in Eastern Europe.”

“No other real estate business can afford such a time. Loans have a term of only 3-5 years, while projects are not exploited due to unexpected events,” said Mr. Hai.

According to the report “Overview of Vietnam’s real estate market 2022” of Batdongsan.com.vn, the real estate market in coastal provinces such as Khanh Hoa, Da Nang, Ba Ria Vung Tau – which is a tourist destination Celebrities are all in trouble.

Comparing the data of the fourth quarter of 2022 with the first quarter of 2022 shows that the level of interest and the amount of news about these markets both decreased sharply. The biggest drop in interest occurred in Ba Ria – Vung Tau and Binh Thuan, down 51%. The land plot segment in these provinces also experienced a significant decline in interest.

Real estate market in the southern coastal provinces. Photo: Batdongsan.com.vn.

Mr. Hai said it was clear that real estate businesses could not anticipate unexpected events, adding that the automatic and natural market adjustment would not solve the problem.

“Thus, it is very necessary to support the State for real estate businesses that have done very well, contributed a lot to the national economic development, and renewed the urban face of Vietnam. That help will also solve the problem of social security, because so many people are involved in this whole ecosystem,” he suggested.

In addition, in order for investors to see the whole market, avoid imbalance in supply and demand in the introduction of products to serve the general market, Mr. Hai said that there should be an information page from the State. This page needs to include all information about planning, real estate transactions, status of projects… so that businesses as well as investors can make more appropriate decisions.

Source: CafeF

Share this post

Must Read

PRODUCTS EXHIBITION
05/04/2022

You may be interested in

31/08/2023
Sustaining its leading position in the Vietnamese tourism industry, Ho Chi Minh City remains a top travel destination
The Ho Chi Minh City Tourism Department is the main organization driving the tourism industry,...
17/08/2023
Advancing connectivity to elevate Phu Quoc into an exceptional international destination. 
The comprehensive master plan for Phu Quoc city, Kien Giang province, until 2040 defines the...
17/08/2023
Vietnam and South Korea actively stimulate and exchange tourists
In 2023, during the Year of Korean Tourism, efforts will be made to enhance connections between...
17/08/2023
Vietnam’s tourism industry demonstrates significant potential for expansion and advancement.
The Deputy Minister of Culture, Sports, and Tourism in Vietnam, Doan Van Viet, has acknowledged...
17/08/2023
Visa advantage is “great news” for Vietnam tourism 
The Asia-Pacific Tourism Association (PATA) welcomes visa facilitation policies for international...
08/08/2023
The hotel market in Ho Chi Minh City has recovered by more than 92%
According to Savills’ report, in the first half of 2023, Ho Chi Minh City welcomed the...
08/08/2023
Vietnam welcomed over 1 million international visitors in July 2023.
July is the first month that the tourism industry welcomed over one million international visitors...
08/08/2023
Vietnam businesses benefit from tourism recovery
HANOI: The strong recovery of tourism has helped businesses in the industry prosper. However,...
20/07/2023
Nearly 5.6 million international visitors come to Vietnam in first half
Vietnam welcomed nearly 5.6 million international visitors in the first half of this year,...
08/06/2023
Vietnam has 103 restaurants honored by the Michelin Guide.
Michelin Guide has honored 103 restaurants/food stalls, including 4 prestigious Michelin-starred...

Subscribe to Our eNewsletters

    captcha
    BOOK A STAND